What is the natural size (pixels x pixels and dpi) of the image? Was this image made through some design program such as Photoshop or Gimp? I can only speak to the settings in Photoshop as I have never used Gimp, but if you chose any of the blank presets under the Web category, the image quality is not good enough to be what you want on the web.
On my site, product photography and any other graphics that I use are all over 4000 pixels x 4000 pixels with 300 dpi. I don’t recommend starting with a base of anything less. I do not compress them before uploading and use the built in Shopify image editor to adjust the file size of the image to be more appropriate for the web. The only time things come out blurry is if I miss-focused the image when taking it.